TESLA Model 3 is stealing all the electric car headlines at the moment, but a new rival which is emerging could be a problematic for the Californian based car firm.

Tesla Model 3 has just got a fresh new rival which will allegedly by $7,000 cheaper

To make matters worse for Tesla, this new rival is VW - one of the largest and most powerful car manufacturers in the world.

A Volkswagen executive made a huge announcement about the VW I.D. at a German auto show regarding the expected price of hatchback.

According to VW the I.D. hatchback will be listed between $7,000 and $8,000 less than the Tesla Model 3.

The news reported by German automotive website Automobile Production, echoes previous statements by Volkswagen who said they wanted to ‘leapfrog’ Tesla and become the biggest EV manufacturer in the world.

Volkswagen's I.D. range is a full electric fleet of new vehicles that set to revolutionise the electric car market. The I.D boasts incredible range , futuristic looks and features.

Additionally, drivers will be able to create a profile which remember their personal preferences inside the car including temperature ambient lighting and seat position.

A new cockpit, eye tracking and head-up display will also be added to the car which according to VW is a “vehicle concept for a new era."

Volkswagen is also hoping to release a filly autonomous version of the car by 2025 using I.D Pilot technology.

VW

The electric car boasts a range of around 370 miles

Back in May CEO of VW, Herbert Diess, reportedly declared that “anything Tesla can do, we can surpass.”

Despite this, the first EV from VW isn’t expected for another three years and Tesla is aiming to produce 10,000 Model 3’s per week by next year, meaning that Volkswagen will have a lot of catching up to do.

For VW however, they have resources and facilities which will be capable of creating higher volume, potentially at a lower cost which could act in their favour in the race for electric vehicle supremacy.